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Does rising import competition harm Vietnam’s local firm employment of the 2000s

This study considers for the first time the role of rising import competition on employment in Vietnam. Using a time differenced and instrumental variables approach, our study shows that import competition results in employment contraction. Firms operating in industries that face greater import competition have reduced employment. | Economic Research-Ekonomska Istraživanja ISSN: 1331-677X (Print) 1848-9664 (Online) Journal homepage: http://www.tandfonline.com/loi/rero20 Does rising import competition harm Vietnam’s local firm employment of the 2000s? Truc Le Nguyen, Huong Vu Van, Lam Duc Nguyen & Tuyen Quang Tran To cite this article: Truc Le Nguyen, Huong Vu Van, Lam Duc Nguyen & Tuyen Quang Tran (2017) Does rising import competition harm Vietnam’s local firm employment of the 2000s?, Economic Research-Ekonomska Istraživanja, 30:1, 1882-1895, DOI: 10.1080/1331677X.2017.1392883 To link to this article: https://doi.org/10.1080/1331677X.2017.1392883 © 2017 The Author(s). Published by Informa UK Limited, trading as Taylor & Francis Group Published online: 10 Nov 2017. Submit your article to this journal Article views: 248 View related articles View Crossmark data Full Terms & Conditions of access and use can be found at http://www.tandfonline.com/action/journalInformation?journalCode=rero20 Economic Research-Ekonomska Istraživanja, 2017 VOL. 31 NO. 1, 1882–1895 https://doi.org/10.1080/1331677X.2017.1392883 OPEN ACCESS Does rising import competition harm Vietnam’s local firm employment of the 2000s? Truc Le Nguyena, Huong Vu Vanb, Lam Duc Nguyena and Tuyen Quang Trana a University of Economics and Business, Vietnam National University, Hanoi, Vietnam; bDepartment of Economics, Academy of Finance, Hanoi, Vietnam ABSTRACT This study considers for the first time the role of rising import competition on employment in Vietnam. Using a time differenced and instrumental variables approach, our study shows that import competition results in employment contraction. Firms operating in industries that face greater import competition have reduced employment. We also find strong evidence of a negative impact of import competition for small and very small firms, as well as in the period before Vietnam’s World Trade Organization (WTO) accession. Our results also reveal that previous studies at the